Omit "whichever of sections 124U and 124UA is applicable", substitute "section 124UA".

Repeal the section.

Repeal the subsection, substitute:

(2)

The owner of a unit of industrial property that relates to a copyright subsisting in an Australian film may elect that this Division does not apply in relation to that unit.

Income Tax Assessment Act 1997

After "intellectual property", insert "(except copyright in a ^* film)".

After "Copyright", insert "(except copyright in a ^* film)".

After "copyright", insert "(except copyright in a ^* film)".

After " ^* non-assessable non-exempt income", insert "and, if relevant for the asset".

After " ^* non-assessable non-exempt income", insert "and, if relevant for the asset".

Omit "mentioned in the table in subsection 40-95(7)", substitute "to which an item in the table in subsection 40-95(7) applies".

Repeal the example, substitute:

Example: Some examples of changes in circumstances that may result in your recalculating the effective life of a depreciating asset are:

* your use of the asset turns out to be more or less rigorous than you expected (or was anticipated by the Commissioner's determination);
* there is a downturn in demand for the goods or services the asset is used to produce that will result in the asset being scrapped;
* legislation prevents the asset's continued use;
* changes in technology make the asset redundant;
* there is an unexpected demand, or lack of success, for a film.

Omit "mentioned in the table in subsection 40-95(7)", substitute "to which an item in the table in subsection 40-95(7) applies".

The amendments made by this Schedule apply to copyright in a film acquired on or after 1 July 2004.